2011 (12) TMI 50

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..... of the Income Tax Act, 1961 against the order of the Tribunal dated 7.12.2010 in the case of Monto Motors Ltd. The assessment year in question is 2004-05.   2. The respondent assessee was set up in the year 1998 and was engaged in the manufacture and sale of moped and bikes etc. During the year in question the respondent assessee had incurred advertisement expense of Rs.1,36,88,928/-. The As .....

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..... iness of selling motor bikes was a competitive business the respondent had decided to advertise and undertake sales promotion. He accordingly held that the respondent was entitled to treat the aforesaid expense as a revenue expense. The aforesaid findings were upheld by the Income Tax Appellate Tribunal (Tribunal, for short).   4. In view of the factual matrix which is available on record an .....

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..... Advertisements and sales promotion are conducted to increase sale and their impact is limited and felt for a short duration. No permanent character or advantage is achieved and is palpable, unless special or specific factors are brought on record. Expenses for advertising consumer products generally are a part of the process of profit earning and not in the nature of capital outlay. The expenses .....

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